Bitcoin Mutual Fund CEO Explains Why Canada is More Blockchain-Friendly than the U.S.
Canada has set the pace as the first government to ever approve an exclusive bitcoin mutual fund. This builds upon its reputation as a friendly environment for emerging technologies. The atmosphere in Canada seems to be freer and more conducive to innovation in this field, based on the numerous developments that the industry has experienced even prior to this time. This is in comparison to its prominent neighbor, the United States, whose Securities and Exchange Commission (SEC) upholds strict measures while trying to figure out appropriate regulatory systems for the blockchain and cryptocurrency ecosystem.
In an exclusive interview with CCN, Sean Clark, CEO of First Block Capital Inc. — the operator of FBC Bitcoin Trust, the first bitcoin mutual fund to trade in Canada — discussed the underlying factors that make Canada a country that is friendly to new technologies such as cryptocurrency. According to Clark, unrelenting education, political will, and open-mindedness, among other factors make the North American nation an ideal hub for technological innovation.
He told CCN:
“I think in general, the Canadian regulatory bodies understand the potential benefits of blockchain and cryptocurrency, and traditionally Canadian regulators have been open to technological innovation. That is different from what you get in places like the US.”
Canadian Regulators are More Open to Dialogue
Clark noted that his company, in collaboration with other experts, worked directly with the Canadian securities regulators and educated them for a period of six months while also using the discussions as an opportunity to build relationships. Comparing this to what is obtained in the United States, especially with the SEC, he believes that the Canadian regulators appear to be more open to dialogue with regards to technological innovations.
The elected leadership of Canada is also identified by Clark as a key factor that is enabling the government's openness to cryptocurrency and other emerging technologies. He noted that Canadian Prime Minister Justin Trudeau is embracing blockchain technology. Also, the Canadian leadership sees the United States’ increased isolation of these technologies as an opportunity to get skilled labor migrated into Canada to help contribute to the economy.
“This is what we’re seeing trickling down to the regulatory environment, he said, “as they are not stone-walling but rather embracing and wanting to understand the implications of blockchain technology and working with local companies to be able to understand and have the asset class flourish.”
Another important factor that Clark noted is that the Toronto Stock Exchange (TSX) is one of the very few capital markets globally where you can see blockchain and cryptocurrency companies publicly listed.